When looking for the best share to buy, some investors target those that are already beating the market, so-called momentum stocks. I’m not that type of investor.

For better or worse, I prefer to buy shares that are trailing and cheaper as a result. My strategy’s simple: buy good companies at a reduced valuation, and give them time to recover.

Theoretically, this reduces the risk of overpaying for a red-hot stock that’s about to run out of steam. I’m buying tomorrow’s potential winner, rather than yesterday’s.

That’s a brilliant idea, in theory, but the practice can be bumpy. I’ve bought FTSE 100 strugglers Glencore, GSK and JD Sports this year. Sadly, they’re still very much struggling. When buying out-of-favour stocks, patience and fortitude’s required.

Can this big loser become a winner?

International sports betting specialist Entain Group (LSE: ENT) very much fits the profile of the stock I like to buy. I’ve had it on my shopping list since the summer, but never got round to buying it. So far that’s turned out to be the right decision.

On 8 August, I noticed its shares had fallen more than 60% in 12 months, and were trading at just 11.84 times earnings. I thought that represented decent value. Especially since the stock had just jumped 9% that morning, following upbeat interims.

Companies don’t struggle without reason. Entain, whose brands include Ladbrokes, Coral, Sportingbet, PartyCasino and PartyPoker, had gone on an acquisition spree under former CEO Jette Nygaard-Andersen. It appeared to destroy value rather than created it, with 2023 earnings per share plunging 27%.

Its costly 50:50 US joint venture with MGM Resorts International, BetMGM, has yet to pay off. A bribery investigation into its former Turkish business was only resolved at the cost of £585m.

Investors were also concerned about October’s Budget, expecting chancellor Rachel Reeves would throw new taxes and regulations at the gaming industry. While that didn’t happen, other markets such as Brazil and the Netherlands are tightening.

There must be better shares than this one

Entain suffered another blow on 16 December, when Australian regulators slapped it with a money-laundering lawsuit. The shares plunged another 15%. Over 12 months, they’re down 30%.

CEO Gavin Isaacs said Entain has been working hard to combat financial crime in Australia, but it risks a big fine. In the last couple of years, Australia’s financial crime regulator has hit gaming firms with fines of $450m and $63m for money laundering breaches.

‘Today, Entain looks ‘okay’ value, with a price-to-earnings ratio of 16.1. But To be honest, I expected it to be cheaper than that.

Just because a stock has fallen 30%, doesn’t mean it can’t fall another 30%. I’ve no idea where the Entain share price will go in 2025 and beyond. But instead of the best share to buy, it looks like one of the riskiest.

Online gaming is a controversial sector, and will remain a target for regulators around the world, with all the uncertainty that brings. There are so many more FTSE 100 shares I’d rather buy than this one. I’ll strike Entain off my shopping list. I can see much better value out there.